Medizone International Inc. said it reached a tentativeagreement for a group of unnamed private investors to make a$10 million equity investment in the company.
Medizone of New York which holds development rights toseveral ozone-based products, said if the investment iscompleted its existing directors will resign, and a new boardappointed by the investor group.
"If my colleagues can bring $10 million into the company bystepping aside, so be it," said Terrence McGrath, Medizone'spresident. The agreement provides payments to be made toresigning management
The investment is subject to a review and an independentfinancial audit of the company. The investors, called the RMBGroup of Boston, have until early October to complete the dealand are attempting to line up other investors, McGrath said.
Medizone controls rights to an ozone-based treatment fordiseases caused by lipid-enveloped viruses, including AIDS,hepatitis B and herpes. It is also developing a patented ozone-based process for decontaminating blood and blood products.
The blood treatment is in preclinical testing by a Canadiangovernment agency against simian immunodeficiency virus(SIV), McGrath said. The technology's ability to purify FactorVIII protein, a treatment of hemophilia, of HIV was reported inthe Oct. 1,1991 edition of Blood, the Journal of the AmericanSociety of Hematology. Medizone has proposed the process as amethod of decontaminating blood before transfusion intreating AIDS.
(c) 1997 American Health Consultants. All rights reserved.